Company Wrong purchased Company Right on 1/1/2021 and recorded goodwill of $750,000. There were no goodwill impairments recorded during 2021 or 2022 in relation to this goodwill. On 12/31/2023 the implied fair market value of the goodwill was $700,000. Additionally, on 12/31/2023 Right divisions net assets, including goodwill, had a book value of $900,000. The fair market value of the division, including goodwill was $1,000,000.

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Please record the journal entry, if necessary, to record impairment of goodwill on 12/31/2023:

Question 3 options:

	Dr. Impairment Loss $50,000 Cr. Goodwill $50,000
	Dr. Impairment Loss $100,000 Cr. Goodwill $100,000
	Dr. Impairment Loss $150,000 Cr. Goodwill $150,000
	N/A; No impairment is recognized.